A6

Question 1

AICPA code of professional conduct

Answer 1

Governs any services, objectivity to all

Independence - auditing and other attestation

Question 2

AICPA code requirements

Answer 2

Adequate internal quality control measures
Conflict of interest
Professionalism

Question 3

Confidential information rule

Answer 3

Subpoena

Quality peer review

Question 4

PCAOB audit

Answer 4

Every year >100 issuers

Every 3 years <100

Question 5

PCAOB standards

Answer 5

7 years

Second partner review

Question 6

PCAOB prohibited services

Answer 6

Bookkeeping
Legal services
Expert services unrelated to the audit

Rotation every 5 years

Question 7

PCAOB conflict of interest

Answer 7

Audit firm cannot have cfo, CEO, cao for one year before the audit

Question 8

SEC independence

Answer 8

Mutual conflict of interest
Auditor acting as a management
Auditing own work
Advocating client

Question 9

Partner rotation on the audit

Answer 9

5 years

Question 10

DOL independence

Answer 10

No opinion on financial information to be submitted

Question 11

IFAC

Answer 11

Integrity
Objectivity
Competence 
Confidentiality
Behavior

Question 12

Audit documentation

Answer 12

Assist in planning, conducting and supervising
Show that records reconcile with FS
Enough details
Copies of contracts

Question 13

Audit documentation dates

Answer 13

SAS - 5 years
PCAOB - 7 years

Before final audit documentation file:
SAS - 60 days
PCAOB - 45 days

Question 14

Audit documentation content

Answer 14

Permanent file
Current file
Explanation of tick marks

Question 15

IT audit procedures

Answer 15

Manual auditing procedures (around the computer)
Computer assisted audit techniques (CAAT)
Combination

Question 16

CAAT include

Answer 16

Transaction tagging (follow specific transaction)
Embedded audit module (specific criteria)
Test of data
Integrated test facility
Parallel simulation
GASP

Question 17

GAGAS

Answer 17

Includes designing the audit to provide reasonable assurance of detecting material misstatements resulting from noncompliance

Question 18

Audit requirements for federal financial assistance

Answer 18

Extended internal control documentation
Written report on controls
Compliance requirement
Application of single audit standard

Question 19

Types of government audits

Answer 19

Financial audits (GAAP, OCBOA)
Attestation engagement (expanded requirements)
Performance audits (effectivenessx3, internal control, compliance)
Compliance

Question 20

Increased mgmt responsibilities - GAGAS

Answer 20

Identification of applicable laws
Establishment of internal controls
Preparation of supplementary fin reports
Obtaining an audit

Question 21

Increased auditor responsibilities - GAGAS

Answer 21

Obtaining reasonable assurance that free of material resulting from violations

Assessing whether mgmt identified

Question 22

GAGAS principles

Answer 22

Ethics
General standards (independence, judgement, competence, quality - 3 years)

Question 23

Additional GAGAS for performing financial audits

Answer 23

Previous audits - recommendation
Abuse - compliance with contracts
Developing a finding - criteria, condition, cause, effect
Documentation - supervise before report

Question 24

Additional GAGAS requirements for reporting financial audits

Answer 24

Compliance with GAGAS
Scope on compliance 
Deficiencies
Report viewers of officers
Report confidential information

Question 25

GAGAS IC report

Answer 25

Required Evaluating compliance is part of an opinion Assertion that specific controls are considered Weaknesses

Question 26

Single audit objectives

Answer 26

>750 000$ (for each program) Audit of FS Compliance

Question 27

Program-specific audit

Answer 27

Not FS as a whole

Question 28

Auditee special program

Answer 28

30 days of receipt | After 9 month

Question 29

Single audit reporting

Answer 29

FS - GAAP SEFA IC and compliance (>25 000) 3 years docs for all

Question 30

Single audit steps

Answer 30

1. 750 000$ 2. Low risk (20%) type A 3. High risk (40%) type B 4. Major

Question 31

Quality control elements

Answer 31

``` Human Resources Engagement acceptance Leadership responsibilities Performance of the engagement Monitoring (3 years) Ethical requirements ```